Blair told to scrap new runway plans

Key government proposals to build more airport runways must be abandoned, says a leaked report from one of Britain's most authoritative think-tanks.

The Institute of Public Policy Research has slammed the Government for being 'in hock' to the airline industry and that existing capacity at airports should be utilised more efficiently before expansion is considered.

The IPPR, considered New Labour's favourite think-tank and the brains behind the not-for-dividend model used for Network Rail, demands that the aviation industry's contribution to climate change through harmful fuel emissions and land-hungry development must be recognised. At present airlines pay no tax on fuel or VAT on tickets.

The report's author, Simon Bishop, said: 'The key point is the Government must understand the climate change impact of future aviation growth... Other industries are already footing the bill. The aviation industry is outside that. Other industries are effectively subsidising aviation.'

In the autumn the Government will publish its air transport White Paper which will shape the British airline industry for 30 years and be one of 2003's key issues.

The IPPR's stance will be a severe blow to airlines and the British Airport Authority, which are anxious to see extra capacity rapidly delivered. The Government is weighing up whether to build new runways at Heathrow, Stansted or Gatwick as more people are predicted to fly. But the IPPR says short-haul journeys in Britain should be discouraged in favour of lucrative long-haul travel, and if extra capacity is needed it should be earmarked for Manchester, Glasgow and Yorkshire to cure regional economic imbalances.

The IPPR's final draft of its report, to be published in March, argues that 'profits from retail shops and runway facilities should be separated as soon as possible and landing charges allowed to rise slowly to rates that cover the full operating and infrastructure costs'.

The IPPR wants all runway slots to be auctioned over a five-year period; at present slots are withdrawn only if not used 80 per cent of the time. It also wants the UK to support an EU emissions charge to tackle greenhouse gases. Aviation contributes just under 4 per cent to emissions causing climate change.

Airport expansion strategy is based on forecasts that air travel demand will triple by 2030, and airlines argue that the IPPR proposals would price travellers out of the sky.